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A) IF the price of a slice of pizza rises from $2,50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity what is the percentage in price?
B) If a consumer increases her quantity of ice cream consumed by 1005 WHEN HER INCOME RISES BY 255 then her income elasticity of demand for ice cream is?
C) The market demand for wheat is Q=100-2p+1pb+2y. If the price of wheat, p, is $2, and the price of barley, pb, is $3, and income, Y, is $1000. Then what is the income elasticity of wheat?
Using the money market and bond market analysis explain how the Federal reserve could lower the interest rates by buying government bonds from the banking sector of the U.S. economy ( should included two graphs and an explanation)
A “rule of thumb” for automobile owners is that the yearly total costs (maintenance and insurance) for the first five years of operation of a new (i.e., not used) automobile will average roughly 10% of the vehicle’s purchase price.
In a Solow-type economy, total national saving, St, is St = sYt - hKt. The extra term, -hKt, reflects the idea that when wealth (as measured by the capital stock) is higher, saving is lower. (Wealthier people have less need to save for the future.) F..
It is obvious that US fiscal policy makers cannot manage balancing the budget every year, As an alternative, Balancing the budget over the business cycle requires
Explain how the economy can adjust in the long run to restore full-employment equilibrium. Draw a graph to illustrate this adjustment process.
Where Q is the number of cuts per week and P is the price of a hair cut. Terry is considering raising her price above the current price of $15. Terry is unwilling to raise price if the price hike will cause revenues to fall. Should Terry raise the pr..
Where one the theoretical Production Possibility Frontier (PPF) do you think the US was on September 10, 2001? What happened thereafter? Support your answer with evidence such as unemployment rates, labor participation rates and information on invest..
The day after a snowstorm, cars arrive at Mel’s Auto-Wash at an average rate of 10 per hour according to a Poisson process. The automated car washing process takes exactly 5 minutes from start to finish. What is the probability that an arriving car w..
Draw appropriate marginal income curve. Show range over which a marginal cost curve could rise or fall without affecting cost industry charges.
Assume a market with many individuals who trade goods. The number of goods available for trade grows as time evolves. In the first period, there is only one good to trade, in the second period, two goods, and so on (obviously in the Nth period there ..
if sugar protectionism has the bad effects stated in the editorial, why dont congress and the president eliminate it?
Suppose, on the other hand, that the second country retaliates with an export subsidy of its own.
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